Central America has yet to reach its trade potentialTrade in Central America has grown significantly over the past decade, especially after the negotiation and signing of trade agreements among countries... Show More + and as a regional bloc with other markets. As a result, trade in the region grew 8% (as a share of GDP) between 2000 and 2011. Intra-regional trade has also increased. For most Central American countries, the isthmus is now the second leading export market.However, economic studies indicate that logistics and transport obstacles still limit Central America’s trade potential. Several World Bank studies have shown that the high costs of domestic transport, together with bottlenecks at border crossings, are the main obstacles for trade among Central American countries and with other markets around the world.According to this research, the lack of quality secondary roads, costly land transport services and lengthy customs clearance procedures are the main hindrances to trade. These logisti Show Less -

A Quick LookAccording to the study, Central American exports are concentrated in relatively low value-added products such as textiles, coffee, sugar, car parts and shrimp. Below, the main export characteristics... Show More + of these countries:Costa RicaIn the last two decades, Costa Rica’s trade balance has not changed significantly. Compared to its neighbors, its trade deficit in the last five years has been low — 5% of GDP. It went from being an exporter of fruit, vegetables and textiles to a current portfolio that includes high tech products such as integrated circuits, computer parts and medical equipment. Its main export partner is the EU, which accounted for a third of this country’s exports between 2006 and 2008.El SalvadorIts annual export growth rate is the lowest in the region. Despite an influx of remittances from abroad compensating these numbers, it still exhibits a substantial trade deficit: approximately 20% of GDP. The country’s big break has been in diversifying the product portfol Show Less -

More Time, More CostOn the border between Costa Rica and Nicaragua, there normally is a long line of trucks waiting their turn to present their paperwork. Furthermore, the parking lot opposite the... Show More + customs office is full of vehicles waiting to regularize their documentation and continue their journey. Experts point out that “the waiting time on the San Jose-Managua road border crossing at Peñas Blancas — for an empty return — is 24 hours, or around 22% of the total trip duration on average.” This scenario is common to almost all Central American border crossings. While waiting, perishable products such as milk, beef, fruit and vegetables must be kept refrigerated in trucks, resulting not only in a great loss of time, but of fuel as well. The time it takes to travel from one destination to another is not only affected by unpredictable customs procedures, but also by other factors: congestion in and around urban areas, the impossibility of traveling at night due to public safet Show Less -

So Close, Yet So FarOvercoming these obstacles would have a direct and positive impact on the volume of Central American agricultural exports, which in recent years have hovered between US$9.3 billion... Show More + and US$9.8 billion, with Guatemala and Costa Rica being the main exporters.According to the report, the three main bottlenecks facing producers, especially small-scale farmers, include:Low -quality rural roadsAging infrastructure and slow customs proceduresSanitary and phytosanitary processes that are sometimes repeated when crossing the border.“Bottlenecks in logistical chains have a clear and measurable impact on the volume and quality of the perishable agricultural products that are finally delivered,” states the report, titled “Agro-logistics in Central America.”For example, the logistical costs for a big tomato producer exporting from Costa Rica to Nicaragua — including road transportation via unpaved rural roads, driving costs and custom duties — reach US$0.15 per kg. However, the w Show Less -

MEXICO CITY, July 22, 2010 - "Mexico" and "green", "low-carbon" and "growth" are words increasingly found together not only in Google searches but also in discussions... Show More + across the region's second largest economy as it increasingly takes the lead in the climate change debate and in the adoption of eco-friendly growth initiatives.This week Mexico's green leadership was further recognized on a regional stage as the World Bank confirmed the country's stance as a trusted partner in adopting mechanisms to mitigate and adapt to climate change.Ending a week-long tour of the region, World Bank president Robert B. Zoellick visited Mexico to sign two recently-approved 'green loans' worth US$800 million and to announce new Mexican participation in the Forest Investment Program (FIP), a global initiative that has received US$ 542 million in contributions for the reduction of greenhouse gas emissions from deforestation and forest degradation. Mexico was recently Show Less -